How much money do you need to start investing
You can start with $10–50. What matters is not the size of the first deposit but adding money every month and leaving it alone for years.
- You can start with $10–50: many brokers sell fractions of units.
- First debts and a 3–6 month reserve, then purchases.
- A regular contribution matters more than the first sum: $100 a month over 30 years is more than it seems.
The short answer
Technically the bar is low: one unit of a large fund costs from a few dozen to a few hundred dollars, and many brokers let you buy a fraction of it — for $5 or $10. So the question is not whether you have enough to get in, but whether you can add money regularly.
What to do before the first purchase
- Pay off expensive debt. A credit card at 25% a year eats more than any fund earns.
- Build a reserve of 3–6 months of expenses. It sits in a savings account, not in stocks. Without it, the first car repair has to be paid for by selling stocks — possibly on a day when they are down.
- Decide how long the money can stay. Put into stocks only what you will not need for the next five years.
Why regularity matters more than the amount
Below is a calculation for a monthly contribution at 7% a year. That is an illustrative figure, not a promise: real years range from plus 25% to minus 30%.
| Monthly contribution | After 10 years | After 20 years | After 30 years |
|---|---|---|---|
| $50 | $8,700 | $26,000 | $61,000 |
| $100 | $17,300 | $52,000 | $122,000 |
| $300 | $52,000 | $156,000 | $366,000 |
Over 30 years at $100 a month you contribute $36,000 yourself; the rest is interest on interest. So a year lost waiting for “a big sum” costs more than it seems.
What eats a small amount
- Commissions. If a broker charges $2 per trade and you buy for $20, that is minus 10% at once. With small sums choose a broker with no trade fee, or buy less often but in larger amounts.
- Account fees. Some brokers charge a monthly fee on small balances. Check the pricing before opening an account.
- Money transfers. A transfer abroad can cost $20–40. With small contributions it is cheaper to transfer once a quarter.
What to buy with the first money
With a small amount there is no point in assembling ten separate companies. One broad fund is already hundreds of companies in one purchase. How it works is in the guide “What an ETF is”; a step-by-step plan is in “How to start investing from zero”.
Work out your own case: contribution, term and the sum it leads to.
Goal calculator →Already hold your first securities? The site shows the portfolio's growth for years ahead with your contributions.
My portfolio →This article is educational and is not investment advice. The return in the calculations is illustrative; investments can lose value.